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This document provides a business plan for a natural disaster alarm called NDIHA. It discusses the vision to provide protection during natural disasters. An analysis of the civil defense safety industry finds high buyer power, low supplier power, low threat of new entrants, high threat of substitutes, and high rivalry. The product is a modified smoke alarm directly connected to civil defense to provide warnings. Key suppliers and partners are identified. The differentiation strategy is used due to the high cost of the product. The most important value chain activity is making the product. Key business processes and systems to support this are described.
This document provides a business plan for a natural disaster alarm called NDIHA. It discusses the vision to provide protection during natural disasters. An analysis of the civil defense safety industry finds high buyer power, low supplier power, low threat of new entrants, high threat of substitutes, and high rivalry. The product is a modified smoke alarm directly connected to civil defense to provide warnings. Key suppliers and partners are identified. The differentiation strategy is used due to the high cost of the product. The most important value chain activity is making the product. Key business processes and systems to support this are described.
This document provides a business plan for a natural disaster alarm called NDIHA. It discusses the vision to provide protection during natural disasters. An analysis of the civil defense safety industry finds high buyer power, low supplier power, low threat of new entrants, high threat of substitutes, and high rivalry. The product is a modified smoke alarm directly connected to civil defense to provide warnings. Key suppliers and partners are identified. The differentiation strategy is used due to the high cost of the product. The most important value chain activity is making the product. Key business processes and systems to support this are described.
Name Kishen Purushotham NetID kpur294 Group Number: 209 Website Link: http://infosys1102014ssgroup209.blogspot.co.nz Tutorial Details Tutor: Day: Time: Johnny Shubert Wednesday 11am Time Spent on Assignment: 15 hours Word Count: 1609
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2 NDIHA (NATURAL DISASTER IN HOUSE ALARM) INTRODUCTION Natural calamities can cause complete havoc in a city or country. The problem we addressed is that, people are slow to receive warnings/instructions when natural disasters are imminent, because the current systems in place are ineffective. Our solution is a modified smoke alarm (NDIHA Natural Disaster In House Alarm), which is directly connected to the Civil Defence Headquarters of the particular city/region/state. Therefore, when a disaster is approaching the Civil Defence HQ (CDQ) send out a signal that is picked up by our device, warning all who own this device. 3. BUSINESS SECTION 3.1 Vision To understand the fear that every household may have and give protection like no other device on the face of this planet. 3.2 Industry Analysis: The industry in which we operate in: Civil defence safety industry. Force: High/Low: Justification: Buyer power: High The buyer power is quite high in our industry as there are many choices to buy from. Our industry includes applications on the android/apple market which provides information on disasters, such as the Disaster Alert app, (Disaster Alert, 2014). This app operates in both android/apple market and is a famous one. Supplier power: Low The supplier power is quite low as the industry is small. There are very few buyers in terms of parts needed for smoke alarms. Hence, the suppliers dont have much control. Threat of new entrants: Low The threat of new entrants in our industry is low as there are many competitors in the market. The entry barrier is increasing with the advancing technology and the unlimited access off apps. Threat of substitutes: High The threat of substitute products is high as the alternatives are quite high. Instead of our product, there are many others in the app market which provide instantaneous information on disasters. Searching on the google store I had found 15-20 apps directly relating to the industry in which we operate. Rivalry among existing competitors: High Due to the large amount of competitiors in the industry, the rivalry among existing customers is high. Most of these apps are free of cost and work very well. Some of these apps include Geohazard, Disaster Alert, and many more.
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3 Overall attractiveness of the industry: The attractiveness of an industry is based on the use of its products for the customers. The use for safety devices is quite attractive to customers as it ensures their safety, hence, the industry is quite attractive. 3.3 Customers and Thei r Needs Our product would appeal to all customers in general, as our product is a safety device which can be used by anyone. However, our target customers would include family households, small businesses, and even big industries. In the Christchurch earthquake which occurred in February 2011, (Ian Mclean and Co., 2012), there were more demands for services than the government could attend to. Therefore, during a disaster people are in need instantaneously and are in search of information/help ASAP. 3.4 The Product and Service The NDIHA is a modified smoke alarm device with an antenna, which is directly linked up to the CDQ in a nearby region. The NDIHA receives information instantaneously when a disaster is approaching or has hit. The direct connection between the CDQ and the NDIHA is via a radio frequency transmitter. This gives our customers the satisfaction of receiving information quickly, and it keeps them updated via a live feed from the CDQ. After the purchase of the NDIHA, the service is always active and directly connected up to the CDQ via. 3.5 Suppliers and Partners Global Sources manufactures and supplies many parts/products, including smoke alarms. They are a company located in China and sell various types of smoke alarms, and would be our main supplier as they provide us with the product, i.e. the smoke alarm. Antenna Systems and Solutions is company located in North America, and they supply antenna related hardware. These antennas will be used in the NDIHA, so they can pick up the frequencies in which the CDQ send information through. The CDQ of NZ is a partner. The NZ CDQ is what our NDIHAs will be directly connected to, and our company will work side by side with them. The CDQ of NZ would be able to use our product to communicate with people quickly and efficiently. Natural Hazards Research Platform (NHRP), is another partner located in Lower Hutt, NZ. The NHRP work on avoiding, organising, and controlling as much as they can in relation to risks that could occur in a natural disaster. Working as a partner with them would help our company grow as they will promote our product and is helping them in terms of their research/goals. 3.6 Strategy: Our organisation would follow the the differentiation method, as our product is both of high cost and in a broad market. In terms of the cost strategy, the NDIHA is fairly costly to manufacture as we are paying our suppliers a fair price to buy the parts/goods. Therefore, when sold it is likely to be a bit more expensive than many competitor apps, which are free. However, our product is a lot more efficient than the others. Market wise, the market is very broad and there are many apps which indicate disasters.
3.7 Value Chain Activity: Make the product/service
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4 The most important value chain activity in our business would be, making the product, i.e. the NDIHA. Or company manufactures the goods we receive from suppliers, i.e we put together the smoke alarms and antennas purchased from suppliers. Making the product, is the activity in Porters Value Chain model which adds value to our company. The link between the value chain activity and the strategy is that, they go hand in hand. The strategy is based on the most important value chain activity. It is of a high cost due to our business also having to pay for labour costs to assemble the NDIHA, hence, the cost strategy is a high cost. 3.8 Business Processes The first business process that takes place within our value chain activity (make the product) is the materials ordering process. In the making of our product, the first step is to recognise and order the correct raw materials to be able to make the product. For us to make the NDIHA, we must order the correct materials, in order for us to make the product. The model can be illustrated as such:
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5 My second business process follows on from the previous one, and is the manufacturing process. After gathering the correct materials and storing inventory, we must assemble the parts together to make the NDIHA. The model can be illustrated as such:
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6 3.9 Functionalities Two functionalities of the materials ordering processs are: Keeping track of how much inventory is in the company at any particular time. This would be useful in order for our company to make estimates on the amount of products we can actually make at a given time. To understand the materials needed and to be able to coordinate with suppliers to ensure materials are supplied. If we are able to understand the materials needed, it would help in the process of making the right orders to suppliers. Two functionalities of the manufacturing process: To assemble and manufacture the products. This is the main functionality of this process, as it is the actual creation of the NDIHA. To see the ratio of the amount of materials needed to produce one product. This will help in being able to see how much the company needs to order to make one product. 3.10 Systems
The inventory management system would be useful in terms of keeping track of the amount of inventory in the company at any given time. This system will quantify the inventory levels, hence, making it easier to understand how much inventory is held and what type of inventory it is. The production management system will help to see the amount of products assembled/manufatured and the rate at which its being done, which helps in seeing the parts to product ratio. This system will keep a clear record of each product that is made and when they are made. The customer management system supports the manufacturing process, as the customers are able to give us feedback on the product, NDIHA, we provide. Most of this feedback, will be based on the way in which we manufacture the product. Therefore, it is foundation system, and helps in understanding the customers needs and adapting to those needs.
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7 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s) Make the product or service
Materials ordering process - Keeping track of inventory levels at any given time. - Understanding the materials needed and making correct choices.
Inventory management system Transaction processing system Manufacturing process - Assembling the parts together to make the product itself. - Ratio of parts needed to the amount of products made. Production management system And Customer management system Transaction processing system And Executive information system
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8 CONCLUSION This business is out there to save the lives of many. The latest technology has been integrated in making the NDIHA, and amongst the competitors its a new and very useful device to have in your house/business. Its direct connection to the CDQ ensures that people will always be connected, putting the scared hearts of many at ease. Our strategy is strong and this concept is a groundbreaking idea which really changes everything. In an unexpected occurrence of a disaster, this is the device that will help you. The business operating system is well planned out and is concise, yet includes every bit of detail. REFERENCES Layer 8. (October 2010). IBM says software helps predict natural disasters. Retrieved from: http://www.networkworld.com/community/blog/ibm-says-software-helps-predict-natural-disas Auckland Civil defence. Auckland Civil Defence Home. Retrieved from: http://www.aucklandcivildefence.org.nz/ Arianne Cohen. 14 Disaster Kit essentials. Retrieved from: http://www.womansday.com/life/14-disaster-kit- essentials-124063 Ian McLean, David Oughton, Stuart Ellis, BasilWakelin, Claire B Rubin. (29 June 2012). Retrieved from: http://www.civildefence.govt.nz/memwebsite.nsf/Files/ReviewOfTheCDEMResponseToThe22FebChchEQ/$file /ReviewOfTheCDEMResponseTo22FebChchEarthquake_Final%20Report_4%20July%202012.pdf Google Store. (29 April 2014). Retrieved from https://play.google.com/store/apps/details?id=disasterAlert.PDC App store. (10 February 2014). Retrieved from: https://itunes.apple.com/us/app/disaster-alert-pacific- disaster/id381289235?mt=8 Google store. Google store. Retrieved from: https://play.google.com/store/search?q=natural+disaster&c=apps Global Sources. http://www.globalsources.com/manufacturers/Smoke-Detector.html Antenna Systems and solutions. Retrieved from: http://www.antennasystems.com Natural Hazards Research Platform. (September 2009). Retrieved from: http://www.naturalhazards.org.nz/